Security Bank H1 profit rises despite lower trading gains

Posted at 08/04/11 1:03 PM

MANILA, Philippines - Security Bank Corp. said Thursday it recorded higher first-half earnings as growth in loans offset the decline in its trading gains.

Security Bank ended the first six months of the year with a net income of P2.4 billion, up 33% from a year ago.

Net interest income rose 17% to P3.5 billion as net loans expanded by 24% to P86 billion.

However, non-interest income dipped 8% to P1.24 billion. The bank blamed this on lower trading gains due to the high interest rate environment. Nevertheless, it said other key components of the income continued to grow, with foreign exchange gains increasing 36% and service charges, fees and commissions up by 23%.

As of end-June, Security Bank's non-performing loan ratio stood at 1%, and its capital base was at 15.4%, above the minimum industry requirement of 10%.